Utah sales tax on invoices (2026 guide)

Utah's sales tax starts at 6.1% everywhere in the state. That figure is made up of the 4.85% state rate plus two local taxes — a 1% local option tax and a 0.25% county option tax — that apply in every Utah location. On top of the 6.1%, many cities, towns and counties add more local taxes, so the rate on your invoice is often higher.

Utah also taxes several kinds of services, especially repairs, cleaning and admissions. If you fix, clean or maintain other people's things, you'll probably need to charge tax on your labor as well as your parts.

Utah sales tax rates

Why we show 6.1% as Utah's statewide rate

The Utah State Tax Commission lists 4.85% as the state sales and use tax rate. (In its quarterly rate charts the state portion appears as two pieces, 4.70% plus a 0.15% Medicaid expansion rate, which add up to 4.85%.) The local option (1.00%) and county option (0.25%) taxes are imposed locally, but they apply in every Utah jurisdiction and Pub 25 lists no exemptions from them — so every taxable sale in Utah carries at least 4.85% + 1.00% + 0.25% = 6.10%.

Other local taxes then stack on top depending on the location, such as resort community taxes (up to 1.60%), rural health care taxes (up to 1.00%), and various public transit and highway taxes. The combined rate chart covers all of these, and rates can change quarterly — the Tax Commission posts changes 60 days before they take effect. Use the Tax Commission's rate lookup or charts for the address you're invoicing.

A few products have lower rates — grocery food, for example, is taxed at a combined 3% statewide — but the full combined rate applies to most goods and taxable services.

Which services are taxable in Utah?

Utah taxes retail sales and leases of tangible personal property, products transferred electronically and certain services. According to Pub 25, taxable services include:

• Labor to repair, renovate or clean tangible personal property, including maintenance agreements.
• Labor to repair, upgrade or maintain products transferred electronically.
• Assisted cleaning or washing of tangible personal property, when the customer doesn't do the work (unassisted car washes are exempt).
• Laundry and dry cleaning, when the customer doesn't do the labor.
• Admission and user fees for entertainment, recreation, cultural and athletic activities, and assisted amusement rides.
• Short-term lodging — stays usually rented for less than 30 consecutive days.
• In-state telecom services and meals at restaurants.

If your service isn't one of these — for example most consulting, design or writing — it isn't on Utah's list of taxable services, although any goods you sell with it are taxable.

Getting a Utah sales tax license

Every seller with an established presence in Utah needs a Utah Sales Tax License. You apply online through the Taxpayer Access Point (TAP) — choose "Apply for a tax account(s) — TC-69." Licenses aren't transferable, and you must file a return every period, even when you have no tax to report.

Once you're licensed:

1. collect the combined rate for the location of the sale,
2. file quarterly if your sales tax liability is under $50,000 a year, or monthly if it's $50,000 or more — monthly filers who file and pay on time can keep a seller discount of 1.31% of the combined sales tax, and
3. keep your records for three years from the date you file each return.

Remote sellers: a business without a physical presence has an economic presence in Utah — and must register and collect — if it has more than $100,000 of sales in Utah during the current or prior year.

What a Utah sales tax invoice should show

• your business name and address,
• the customer's name and address,
• a unique invoice number and the invoice date,
• a description and price for each item or service,
• sales tax as a separate line, with the combined rate you applied, and
• the total due.

State delivery and installation charges separately. Under Pub 25, the sales price of tangible personal property doesn't include delivery charges or installation charges if they're stated separately. Repair labor, by contrast, is taxable whether or not you list it separately. In Invoice Native, tick Tax only on the taxable lines.

Exemption certificates

When a buyer claims an exemption — for resale, for example — they give you the exemption information on Form TC-721, Exemption Certificate, or Form TC-721G for governments and schools. The information can also be provided electronically, as long as it includes everything the paper form asks for; a paper certificate must be signed.

• You can accept a certificate at face value; you're not liable for an improper exemption unless you take part in a fraudulent claim.
• Keep certificates in your records. You can use one on file for future purchases, but you must get a new certificate if more than 12 months have passed since the buyer's last purchase.

Don't send certificates to the Tax Commission — keep them for an audit. See how to invoice a tax-exempt customer.

A worked example

Say you repair small engines and fix a customer's riding mower in a city where the combined rate is 7.25% (a hypothetical rate for this example). You invoice:

• $280 for repair labor, and
• $120 for replacement parts.

Both repair labor and parts are taxable: $400 × 7.25% = $29.00 in tax, and the invoice total is $429.00.

If the same job were in a location with only the statewide 6.1%, the tax would be $400 × 6.1% = $24.40, for a total of $424.40.

Selling to customers in other states

Pub 25 says interstate sales delivered by common carrier or by the seller to a place outside Utah are exempt — keep a bill of lading, freight bill, form TC-757 or other proof of out-of-state delivery. If the buyer takes delivery in Utah, Utah tax applies even if they then take the item out of state. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, other states can require you to register and collect their tax once your sales there pass a threshold they set — check each state's rules and use its rate.

Common mistakes on Utah invoices

• Charging only 4.85% — the 1% local option and 0.25% county option apply everywhere, so the minimum is 6.1%.
• Ignoring the extra local taxes for the delivery location.
• Leaving repair labor untaxed — labor to repair or clean tangible personal property is taxable.
• Taxing separately stated delivery or installation on goods.
• Relying on an exemption certificate when the buyer hasn't purchased from you in more than 12 months.

You can check totals with our sales tax calculator.

Quick checklist for Utah invoices

• ✅ Utah Sales Tax License (TC-69) before your first taxable sale
• ✅ At least 6.1%, plus any extra local taxes for the location
• ✅ Repair, cleaning and other taxable service labor taxed
• ✅ Delivery and installation charges listed separately
• ✅ TC-721 certificates on file, and records kept for three years